Which clause prevents an insured from benefiting if their property is destroyed while in the care of a dry cleaner?

The correct answer is the clause that specifically addresses the relationship between an insured and a third party who has possession of their property, such as a dry cleaner. This clause, known as "no benefit to bailee," ensures that the property owner cannot claim insurance benefits for damages or loss that occur while the property is in the care of another entity. In essence, it protects the insurer from having to pay for losses when the property is under the control of a bailee (the dry cleaner, in this context) who has an obligation to care for it.

This clause is designed to prevent a situation where the bailee could assert a claim against the insurer, thereby preventing undue benefit to the dry cleaner that is not a party to the insurance contract. Therefore, if the dry cleaner accidentally damages or loses the insured property, the insured cannot collect compensation from their insurance policy, which is precisely the intent behind this clause.

Understanding this clause is important for clients who may leave their possessions with others for cleaning or repair, highlighting the need for them to consider additional insurance options or coverage when their property is in someone else's care.